![\"\"](\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/Gold_Wizard_correction.jpg\")
<\/p>\n\n\tBy Rudi Filapek-Vandyck<\/p>\n
\n\tThe TechWizard has some very bad news for the world's gold enthusiasts: gold is in a correction phase, and this phase is likely going to last several more months, not days or weeks.<\/p>\n
\n\tAt the moment, the gold price is sitting on key support in the form of the 20 moving average (M\/A) on weekly price charts. This is an important indicator for medium term trend direction, the Wizard adds, but prospects are not looking promising.<\/p>\n
\n\tHe has observed the weekly M\/A has held up price action since January 2009, which has fueled the metal's bullish momentum. He adds that every time the gold price dived below this trend line it has proved to be a good buying opportunity.<\/p>\n
\n\tFor the time being, the Wizard's bias is to the downside. He suspects M\/A support won't hold and gold could be on its way to US$1025\/oz quickly if his gutfeel is correct.<\/p>\n
\n\t<\/p>\n
\n\tThe TechWizard suspects the correction phase for gold this year might last 6-9 months, similar to what happened between March-December 2008. At that time, gold eventually also fell through M\/A support and subsequently fell much lower. The Wizard believes a decent correction is due, and it won't be a bad thing in itself, setting up gold for the next leg upwards.<\/p>\n